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Save money on car insurance: Tips

Save Money on Car Insurance

Having a car and running it costs money. Buying the car becomes the least of your worries when it comes to expenses as the major concern for everyone is the cost of their car insurance.

Owning a car insurance policy is a legal requirement and you cannot drive without one, doing so will get you penalty points on your licence with a fine on top plus the possibility of being disqualified from driving.

Depending on your circumstances in life car insurance can be a simple expense for you or it can be the opposite and cost your more than you can afford. Add on top of the costs of paying for your fuel, maintenance, MOT’s, tax and more it becomes a large amount to pay every month. The great thing about this website is we will help you make it easy, so below are some tips for you to help you reduce it indefinably.

Save Money on Car Insurance: Pay for your car insurance yearly

This may not be a suitable option for everyone but if you can pay for your car insurance yearly. Paying a lump sum up front to cover the entire year of your insurance rather then a direct debit every month works out cheaper as many insurers add interest charges for direct debit payments and add that to your monthly bill, when you work out all the interest charged over the year you could be saving as much as a monthly payment.

save money on car insurance: pay annually to save on insurance debit chargesSave Money on Car Insurance: Add an older, named driver

Adding a named driver to your car insurance is another way of how to save some money, but watch closely to who you are adding as it doesn’t always result in a saving. For example: being an older driver who is adding a younger driver to your car insurance, the cost could go up. But if your a younger driver who is adding a long-term experienced driver then it could have the opposite effect and go down.

This is because the more experienced driver will also be using the vehicle which means during these times there is less risk which is usually there when the main driver is behind the wheel. Be careful not to make a mistake of adding the person who drives the car less as the main driver as this is known as fronting, due to the less experienced driver driving more you MUST put that person as the main policy holder. Fronting is illegal.

Increase your voluntary excess

You can have two types of excess attached to your insurance policy, you can have Voluntary Excess or Compulsory Excess. The Compulsory Excess is set at a certain amount by your insurance provider and it cannot be changed, the Voluntary excess is the amount set by you the driver, these two sums combined add up to the amount you will pay in the event of a claim.

Now you can set your Voluntary excess to nothing if you want to which means you only pay the compulsory excess but this mean your insurance company has to pay the voluntary excess amount for you when you claim, to them this shows you are not willing to help them deal with your claim which could push up the price of your premiums instead.

save money on car insurance: how car insurance excess works

Adjust the voluntary excess amount the next time you search for a quote and you will see the price lower based on how much you have said you will pay voluntarily, Just remember adding more makes your claim lower a lot more but you need to keep in mind that you will have to pay this amount if you claim. Don’t forget about your compulsory excess price when adding the amount of voluntary as you need to pay this amount also so take careful consideration when adding it all together (Compulsory excess + Voluntary excess – you MUST pay these both).

Total excess is the final amount that you have to pay, if your voluntary excess is £100 and your compulsory excess is £200 you will be paying £300 in the event of a claim and you need to make sure you can afford this, old school savings such as 10% of your paycheck put away for a rainy day will help you in the long run with this situation.

Save Money on Car Insurance: Consider black box insurance

Black Box insurance is a great savings help for young and recently passed drivers, your insurance provider will fit a device inside the dashboard of your car which monitors and tracks the performance of the driver, recording details such as your speed, braking, how you take corners and a few others. You can keep track of the results daily usually via an online app. Driving safely and carefully will help you get a discount on your premiums.

Save Money on Car Insurance: Lower your mileage

When you acquire an insurance policy for your vehicle you must give them information such as the mileage you expect to do over the next year. Driving a lot over the next year will raise your insurance premium as the more you are on the road the more risk you pose to other drivers. Reducing your mileage annually will raise your chances at lowering your car insurance. It will need to be lowered by a considerable amount and it must be true if your insurer finds out that what you have told them is inaccurate then they have the right to not pay you in the event of a claim.

save money on car insurance: reduce annual mileage to save on car insuranceFiguring out your annual mileage is easy to do. First, you must work out how many miles you in a week and then multiply it by 52. But keep in mind this will not always be the same as you may take a trip to the beach this week and drive to France in a few months so make sure you account for possible trips as these if not added could invalidate your claim.

Save Money on Car Insurance: Improve your car’s security

Another thing that can affect your insurance is how secure your vehicle is, car theft/crime not only effects you and your vehicle but it also affects your insurance, keeping your vehicle safe is important to your insurers as it lowers the risk of you needing to make a claim, also having a alarm helps reduce the cost of your car insurance.

Taking extra caution to keep your car safe from theft/damage such as making sure the doors are locked, windows are all the way up when the vehicle is unattended and keeping your personal items out of sight. Being a victim of car theft/damage does not directly affect the amount of premiums you pay but if you have your vehicle broken into because you didn’t lock the doors or left a window open, making a claim will push the compulsory premiums you pay up when the time comes to renew your car insurance at the end of your policy.

Car safety/security is one of the subjects your insurers will take into account when you apply for insurance, this coupled with the price of your car when it was new, cost of parts and the size of the engine. All of these are looked at by your insurers.

save money on car insurance: keep your vehicle safe to lower insurance

Save Money on Car Insurance: Choose your next car carefully

When deciding to get a new car you need to put some thought into the type of vehicle you want to purchase. Some makes and models and a lot less expensive to insure, buying a certain make and type of vehicle can lower your insurance significantly. A car with a 3.0l engine will cost more to insure than a car with a 1.0l engine, due to the simple fact that the bigger the engine the faster the car which means more risk, parts cost more etc.

Insurance providers place different makes and models into different groups, group one will have the lowest premiums whereas group fifty will be paying a small fortune (supercars etc will be in this group no doubt)

So the next time you ask us ‘why am I paying so much on my car insurance?’ and want to know how you can save money, refer back to this article and put everything into play, the more steps you follow in this guide the more money you will save. We have already helped loads of other already with our partner website GoCompare, you can visit them now via this link and see what you can save good luck.